Verification to Release Information

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Question:

We occasionally receive telephone inquiries to verify that a customer account number is active/correct, because the customer signed up for an electronic payment. Our privacy policy requires that we obtain a written authorization from the customer to release information. Is verifying an account number given to us considered releasing information? We are trying to obtain authorization from the customer before verifying an account number.

Answer:

Since the customer must have provided the Originator authority for the e-payments, you can ask the inquiring party to provide a copy. Once you have that, your confirmation of the information is not a release of information that you haven't disclosed under your GLBA provacy disclosures.

You would be covered by section 14 exceptions for servicing and completing transactions initiated by the customer.

First published on BankersOnline.com 9/6/04